Fact #428: June 12, 2006
Light Vehicle Tax Credits
The Energy Policy Act of 2005 created tax credits for consumers who purchase certain advanced technology vehicles, such as hybrid vehicles and vehicles that run on compressed natural gas (CNG). The graph below shows that the highest estimated tax credit is for the Honda Civic that runs on CNG. Purchasers of diesel light vehicles may also be able to receive a tax credit in the future; at the current time, none of the diesel light vehicles qualify for the credit because they do not meet the emission requirements.
Estimates of Light Vehicle Tax Credits under the Energy Policy Act of 2005
Supporting Information
| Make | Model | Fuel Type | Vehicle Class | Adjusted City Miles per Gallon | Fuel Saved (gallons) |
Total Credit |
|---|---|---|---|---|---|---|
| Honda | Civic GX | CNG | Car | 30 | Not available | $4,000 |
| Toyota | Prius | Hybrid | Car | 60 | 2,744 | $3,150 |
| Toyota | Highlander Hybrid (4wd) | Hybrid | SUV | 31 | 3,316 | $2,600 |
| Toyota | Highlander Hybrid (2wd) | Hybrid | SUV | 33 | 3,557 | $2,600 |
| Ford | Escape Hybrid (2wd) | Hybrid | SUV | 36 | 3,155 | $2,600 |
| Lexus | RX 400h (4wd) | Hybrid | SUV | 31 | 3,316 | $2,200 |
| Lexus | RX 400h (2wd) | Hybrid | SUV | 33 | 3,557 | $2,200 |
| Honda | Civic Hybrid | Hybrid | Car | 49 | 2,348 | $2,100 |
| Mercury | Mariner Hybrid | Hybrid | SUV | 33 | 2,907 | $1,950 |
| Ford | Escape Hybrid (4wd) | Hybrid | SUV | 33 | 2,907 | $1,950 |
| Honda | Insight (auto) | Hybrid | Car | 57 | 1,498 | $1,450 |
| Honda | Accord Hybrid | Hybrid | Car | 25 | 1,697 | $650 |
| Chevrolet/GMC | Silverado/Sierra (4wd) | Hybrid | Pickup | 17 | 1,622 | $650 |
| Chevrolet/GMC | Silverado/Sierra (2wd) | Hybrid | Pickup | 18 | 1,393 | $250 |
Return to 2006 Facts of the Week